EU supports AUC in the Harmonisation of the regulatory frameworks for the Electricity Markets in Africa

A joint initiative of the European Union (EU) and the African Union Commission (AUC) is focusing on the process of integration and harmonisation of the regulatory frameworks for the electricity markets in Africa. A fully integrated, competitive and harmonised electricity market would be a strong enabler for accelerating Africa’s development and improving energy access in Africa. A consultation Workshop was held on 27 – 28 February 2018 in Addis Ababa, Ethiopia, to discuss two specific outputs of this collaboration: guidelines and monitoring plan for the harmonisation of Transmission Tariffs Methodology’ and ‘Institutional and Policy Model for Micro /Mini-Grids’. These outputs are the first direct contributions for the implementation of the Strategy and Action Plan for the ‘Development of a Harmonised regulatory framework for the electricity market in Africa’, which was endorsed by the African Heads of State and Government in July 2017.

The Workshop brought together high-level officials representing relevant organisations in the continent, including Regional Economic Communities, regulatory associations, renewable energy and energy efficiency centres and regional power pools, as well as pan African specialized institutions. This final Workshop builds on earlier consultations. The resulting Guidelines and a Monitoring Plan for Transmission tariffs were discussed and validated, looking to establish the key steps for determination of transmission tariffs for international bilateral and regional transactions in regional power markets in a transparent manner.

Finally, a proposal for the establishment of an ‘Electricity Regulatory Framework Unit (ERFU)’ was presented, centralising the coordination effort at continental level, and stakeholders discussed the Unit’s proposed Business Plan 2018-2020 and 1-year Work Plan. On behalf of the European Union, Mr. Felice Zaccheo, Head of Unit, Sustainable Energy and Climate Change, European Commission’s Directorate-General for International Cooperation and Development (DEVCO), said during the opening session of the workshop: “A long term vision is essential for the progressive integration of the continent, and the African Union Commission is bound to play a strategic role in this endeavour. The European Union stands by the AUC Department of Infrastructure and Energy to push forward the implementation of the Strategy and Action Plan already endorsed by the African Heads of State and Government”.

A consultation Workshop was held on 27 – 28 February 2018 in Addis Ababa.

On behalf of the African Union Commission, Mr. Cheikh Bedda, Director for Infrastructure and Energy, noted that “This Programme is one of the critical projects of the African Union. whose implementation will ensure accelerated energy infrastructure development on the continent and will be crucial to the implementation of several initiatives”.

This is the latest development in a fruitful process launched by the EU and the African Union Commission in 2015. The EU’s Technical Assistance Facility, in close cooperation with the African Union Commission developed and validated the Strategy and Action Plans for establishing a Harmonised Regulatory Framework for the Electricity Market in Africa, aiming to accelerate the process of integration and harmonisation of continental and regional electricity markets. Both documents went through extensive stakeholder consultation and validation processes, and were adopted by the Heads of State and Government of the African Union during the 29th African Union Summit held in July 2017 in Addis Ababa, Ethiopia.

This programme is funded by the European Union (EU) through the ‘EU Technical Assistance Facility (EU TAF) for Sustainable Energy, East and Southern Africa’ Initiative.